Inflation Increases for Development Contribution Charges from 1 July 2023

In accordance with Section 106 of the Local Government Act, we have applied inflation to the development contribution charges set in our Development Contribution Policies. New charges for Development Contributions now apply, after being adjusted for inflation.

The revised charges will apply to developments where, in the case of a Resource Consent, the Section 88 Check was completed, and in the case of a Building Consent when the application was Formally Received by us after 1 July 2023 and before 30 June 2024, and where an invoice for this development has not yet been issued. These charges are set out in:

Table 1. Developments covered by the 2021 – 2031 Financial and Development Contributions Policy.

Table 2. Developments prior to 1 July 2021 and after 30 June 2018 are covered by the 2018 – 2028 Financial and Development Contributions Policy.

Table 3. Developments prior to 1 July 2018 and after 30 June 2015 are covered by the 2015 – 2025 Development Contributions Policy.

Table 1 - 2021-2031 Financial and Development Contribution Charges as at 1 July 2023

Table 2 - 2018-2028 Financial and Development Contribution Charges as at 1 July 2023

Table 3 - 2015-2025 Financial and Development Contribution Charges as at 1 July 2023

When we calculate the inflated charges we are required to:

• use the Producers Price Index Outputs for Construction provided by Statistics New Zealand; and
• ensure that inflation is not applied to interest and other financing costs that are incorporated into the charge.

We confirm we have achieved this by:

• Comparing the Producers Price Index from Quarter 1 2022 and Quarter 1 2023 which results in an increase of 9.84%;
• Splitting the existing charges into two parts; Part A - the growth costs excluding interest, and Part B - the interest costs;
• Applied inflation of 9.84% to Part A and then added this to Part B to give the inflated Total Charges.

A summary of the calculation and the new charges is shown in the table above.

You can get more information on development contributions here.